The major market averages averages were up yesterday on lower volume. This morning futures are trading lower at the time of this writing after the European Commission cut its forecast for economic growth in the euro zone in 2014 and raised the estimate for unemployment for the same year, saying growth in Europe is set to remain subdued, while risks and uncertainty remain elevated. While the recovery is expected to continue, it's too early to declare the crisis over, the commission said. "In recent months, the composition of global economic growth has shifted, and the external environment for the EU economy has become more challenging. Growth in some key emerging-market economies has slowed down: triggered by the anticipation of less-expansive monetary policies in the U.S., structural weaknesses have surfaced and financial-market volatility has ensued," the commission said in the report. The euro-zone GDP forecast for 2014 was downgraded to 1.1% from the 1.2% expected earlier and the commission raised the unemployment projection to 12.2% from 12.1%.
Solars were up strongly, reaffirming their pole position in the industry group rankings.
Canadian Solar (CSIQ) gapped up after announcing selective preliminary results for the third quarter ended on September 30, 2013. For the third quarter of 2013, Canadian Solar now expects solar module shipments to be in the range of approximately 460 MW to 480 MW, which exceeds the Company's original guidance of 410 MW to 430 MW. The Company also expects its gross margin to be in the range of 18% to 20% compared to its original guidance of 10% to 12% due to completion and sales of its solar power plants. Canadian Solar will report full earnings results on Wednesday, November 13, 2013.
Another solar energy company Solar City (SCTY) had a pocket pivot yesterday, coming up off the bottom of a short but relatively deep flag formation before stalling to close roughly mid-range. SCTY is expected to announce earnings tomorrow after the close, and this morning the stock is gapping up in pre-open trade.
Tesla Motors (TSLA) just missed a pocket pivot yesterday following a previous 50-day moving average violation on October 30th. It has been the de facto leader this year, and recently has been basing after a huge run up. While it closed above its 50-day moving average, it didnt trade at least 13,327,700 shares, falling short by about 320,000 shares. TSLA is expected to announce earnings today after the close, and this morning is gapping up in pre-open trade.
Luxury retailer Michael Kors (KORS) is gapping up this morning in pre-open trade after beating on earnings. We will be monitoring all of the gap-ups mentioned in this report as and if they become actionable once the market opens.